Even after the selloff, the metal's biggest enthusiasts have not been shaken.
This burst of optimism comes after a painful stretch for gold investors. In the 12 months through January, bullion had climbed 100%. But then Treasury yields and the dollar strengthened during the opening months of the year, and the tech stock boom pulled money away from metals.
The call buying suggests gold bulls believe that environment is shifting. For an asset that often moves opposite real yields, that could be a significant change.
That optimism is notable because the selloff was severe, but the core driver has been real yields. Gold pays no interest, so when bond yields climb, holding bullion becomes less attractive. With the 10-year yield stalling at 4.7%, that pressure has eased for now.
Get the free Always Be Buying eBook and learn the simple system for building wealth on any income
Friday's jobs report added to the picture. Fed Chair Kevin Warsh has faced speculation that he will push for interest-rate hikes, but the July employment report showed payrolls falling by 23,000, including a decline of 53,000 government jobs. A weakening labor market gives the Fed less reason to tighten.
Even with Friday's rebound, gold remains 25% below its January peak. That gap is a reminder of how much ground the metal would need to regain before returning to the highs reached in the 12 months through January. The options flow suggests some traders regard that gap as an opening rather than a reason to retreat.
Gold may also be drawing support from abroad. Nigam Arora of the Arora Report said in a text message: "The trigger for this move off the lows a few days ago was very aggressive buying by Chinese individual investors in the domestic gold ETFs."
International demand matters because a softer dollar makes gold cheaper for overseas buyers. If Chinese buying continues, it could add a second pillar to the metal's recovery beyond the U.S. rates trade.
Friday's options wave is a high-volatility bet, but it reflects a broader view: gold's biggest headwind - rising real yields - may have stalled. If the 10-year yield stays anchored below 4.7% and the dollar keeps sliding, gold could continue to push higher. If yields break out instead, the metal will likely surrender Friday's gains.
For investors, the key is to watch the next inflation and employment reports. The July payrolls number gave the doves a talking point, but one month is not a trend. The gold trade now depends on whether the Fed really is done tightening and whether the yield pause turns into a longer-term ceiling.
Either way, the $180 million call accumulation shows no shortage of conviction among bullion investors. It also means Friday's bounce will be judged against high expectations in the options market.
Download the free Always Be Buying eBook and start putting your money to work today